Grayscale improvised DeFi fund portfolio

The cryptocurrency asset management platform, Grayscale Investments in unison with CoinDesk DeFi Index methodology, announced their updated fund component weightings for each product in connection with their respective quarterly reviews.

The firm, on 3 January 2022, announced an overturn in the components of its DeFi index as part of its quarterly rebalancing. This is the second time the firm has re-balanced its DeFi fund since its outset in July 2021.

The firm had announced on 1 October 2021 that, it had adjusted the Digital Large Cap Fund’s portfolio and had added Uniswap (UNI) and Solana (SOL). As per Tron Weekly Journal’s article on this move of Grayscale, Solana and Uniswap had joined the elite list of a portfolio known as Grayscale Digital Large- Cap Fund (GDLC).

Grayscale has affirmed that it will remove Bancor (BNT) and Universal Market Access (UMA) from the index and add Amp (AMP). Bancor and UMA together had been estimated to be 2% or 2.9% of the index at the time of its launch, respectively. The firm had launched the fund and its index back in July 2021 to support investors with exposure to the fats-pacing crypto market without supervising tokens themselves.

AMP constitutes 7.39% of Grayscale’s DeFi Fund

AMP is the primitive token of the Flexa network, a payment network that enables crypto-collateralized payments at physical and online stores. Flexa uses the AMP token to collateralize digital asset payments while they are confirmed on their respective blockchains and settles the payments in sanction to the beneficiary.

By enabling payments through the Flexa network, Aiding merchants can easily and without stress accept payment in BTC, ETH, and other digital assets. The Flexa network is one of several projects intended to speed up the development of the blockchain into a mature ‘peer-to-peer’ money system.

As reported, DeFi Fund’s fund components constituted of the following tokens and weightings:

  • Uniswap (UNI), 42.33%
  • Aave (AAVE), 13.06%
  • Curve (CRV), 10.63%
  • MakerDAO (MKR), 8.99%
  • Amp (AMP), 7.39%
  • Yearn Finance (YFI), 6.34%
  • Compound (COMP), 5.02%
  • Synthetix (SNX), 3.15%
  • SudhiSwap (SUSHI), 3.09%

Grayscale has affirmed that it intends to enhance its GBTC product into a primitive exchange-traded fund. The firm has also applied with financial regulators to launch an ETF that would track the companies that operate in the digital asset world.